Upexi Inc (UPXI) 2023 Q3 法說會逐字稿

Good day and welcome to the Upexi, Inc. 2023 fiscal third quarter financial results conference call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Valter Pinto, Managing Director at KCSA Strategic Communications. Please, go ahead.

美好的一天，歡迎參加 Upexi, Inc. 2023 財年第三季財務業績電話會議。 （操作員說明）請注意此事件正在被記錄。我現在想將會議轉交給 KCSA 策略傳播公司董事總經理 Valter Pinto。請繼續。

Thank you, operator. Good evening, and welcome, everyone to the Upexi 2023 fiscal third quarter financial results conference call. I'm joined today by Allan Marshall, Chief Executive Officer, and Andrew Norstrud, Chief Financial Officer.

謝謝你，接線生。晚上好，歡迎大家參加 Upexi 2023 財年第三季財務業績電話會議。今天與我一起出席的還有執行長艾倫馬歇爾 (Allan Marshall) 和財務長安德魯諾斯特魯德 (Andrew Norstrud)。

Before we begin, I'm going to remind everyone that statements made during today's conference call may be deemed forward-looking statements within the meaning of the Safe Harbor of the Private Securities Litigation Reform Act of 1995. And actual results may differ materially due to a variety of risks, uncertainties, and other factors. For a detailed discussion of some of the ongoing risks and uncertainties in the company's business, I'll refer you to the press release issued this evening and filed with the SEC on Form 8-K as well as the company's reports filed periodically with the SEC. The company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, unless otherwise required by law.

在我們開始之前，我要提醒大家，今天的電話會議中所做的陳述可能被視為1995 年《私人證券訴訟改革法案安全港》含義內的前瞻性陳述。由於以下原因，實際結果可能會存在重大差異：各種風險、不確定性和其他因素。有關公司業務中一些持續風險和不確定性的詳細討論，請參閱今晚發布並以 8-K 表形式向 SEC 提交的新聞稿以及公司定期向 SEC 提交的報告。除非法律另有要求，否則本公司不承擔任何更新或修改任何前瞻性聲明的意圖或義務，無論是由於新資訊、未來事件或其他原因。

In addition, during the course of the call, we may refer to non-GAAP financial measures that are not prepared in accordance with accounting principles generally accepted in the United States and may be different from non-GAAP financial measures used by other companies. The reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures are contained in our earnings release issued this evening unless otherwise noted.

此外，在電話會議過程中，我們可能會引用非 GAAP 財務指標，這些指標並非按照美國普遍接受的會計原則編制，並且可能與其他公司使用的非 GAAP 財務指標有所不同。除非另有說明，否則非公認會計原則財務指標與最直接可比較的公認會計原則財務指標的調節包含在我們今晚發布的收益報告中。

I'd now like to turn the call over to Upexi's CEO, Allan Marshall.

我現在想將電話轉給 Upexi 的執行長艾倫馬歇爾 (Allan Marshall)。

Thank you, and welcome to our 2023 fiscal third quarter financial results conference call. Revenue for the quarter was $24.2 million, an increase of 447% year over year as compared to $4.4 million for the same period in the prior year. Revenue growth was predominantly driven by strong sales across our health and wellness brands, VitaMedica; children's educational toy brand, Tytan Titles; our pet category, Lucky Tail, our brand Lucky Tail. E-core and Cygnet continued to perform and remain poised to drive growth across our liquidation business segment.

謝謝，歡迎參加我們的 2023 財年第三季財務業績電話會議。該季度營收為 2,420 萬美元，較上年同期的 440 萬美元年增 447%。營收成長主要得益於我們的健康和保健品牌 VitaMedica 的強勁銷售；兒童益智玩具品牌Tytan Titles；我們的寵物類別，Lucky Tail，我們的品牌 Lucky Tail。 E-core 和 Cygnet 繼續表現出色，並有望推動我們清算業務部門的成長。

Gross profit during the quarter totaled $9.6 million, an increase of 52% year over year, yielding approximately 40% margins. Our business continues to expand and as the organic growth of our core brands strives towards calendar year 2023, projections of $100 million in sales. For $24 million of revenues this quarter and taking into account the natural seasonality of many of our brands, we see calendar Q4 to calendar Q1, we remain confident in our ability to meet or exceed this goal.

該季度毛利總計 960 萬美元，年增 52%，利潤率約 40%。我們的業務持續擴張，隨著我們核心品牌的有機成長，我們力爭在 2023 年實現 1 億美元的銷售額。對於本季度 2400 萬美元的收入，並考慮到我們許多品牌的自然季節性，我們預計第四季度到第一季度，我們對達到或超過這一目標的能力仍然充滿信心。

Additionally, our focus on cost cuts, improved efficiencies, and optimization has allowed us to achieve 671,000 in positive adjusted EBITDA. It's substantial improvement over $877,000 negative adjusted EBITDA for the same period last year. We anticipate adjusted EBITDA to grow for the remainder of the calendar trending towards our target of 8% to 12% margin at the end of calendar 2023. We see both continued organic top line growth and additional benefits from our cost cutting and efficiencies, efforts to support this trend without taking into account further M&A.

此外，我們對成本削減、效率提高和優化的關注使我們的調整後 EBITDA 達到了 671,000 美元。與去年同期 877,000 美元的負調整 EBITDA 相比，有了顯著改善。我們預計調整後的EBITDA 將在日曆剩餘時間內成長，並趨向於我們在2023 年年底實現8% 至12% 利潤率的目標。我們看到持續的有機營收成長以及我們的成本削減和效率、努力實現的額外收益在不考慮進一步併購的情況下支持這一趨勢。

During and subsequent to the fiscal third quarter, we have made significant progress across each of our brands and operationally. A diverse business mix of non-discretionary, health and wellness, and pet products, and liquidation in wholesale. Direct to consumer in Amazon gives us a well-rounded revenue stream that provides opportunity in most economic environments.

在第三財季期間及之後，我們的每個品牌和營運都取得了重大進展。非全權委託、健康和保健、寵物產品以及批發清算等多元化業務組合。亞馬遜的直接面向消費者為我們提供了全面的收入來源，為大多數經濟環境提供了機會。

Highlighting some of our high performing brands VitaMedica, our health and wellness brand was purchased in late 2021 and have seen 88% organic growth since the acquisition. VitaMedica revenues for the third quarter were $1.96 million as compared to $1.16 million for the same period in 2022, in approximate the $800,000 or 69% improvement. In 2022, it had a growth rate of 50%, and we look forward to additional growth with the launch of new complementary products like [acting treatments] later in 2023.

我們的健康和保健品牌於 2021 年底被收購，並自收購以來實現了 88% 的有機成長，重點介紹了我們的一些高性能品牌 VitaMedica。 VitaMedica 第三季的營收為 196 萬美元，而 2022 年同期為 116 萬美元，增幅約為 80 萬美元，即 69%。 2022 年成長率為 50%，我們期待在 2023 年稍後推出新的補充產品（如[作用治療]），以實現進一步成長。

This is a perfect example of execution of our model. With VitaMedica, we have successfully taken an already growing brand in a key nondiscretionary vertical, optimize their sales to our performance and expanded margins year over year.

這是我們模型執行的完美範例。借助 VitaMedica，我們成功地在關鍵的非自由裁量垂直領域佔領了一個已經不斷增長的品牌，根據我們的業績優化了他們的銷售，並逐年擴大了利潤。

Lucky Tail, our pet category brand with both Amazon and direct-to-consumer platforms, saw 50% organic growth in 2022. Lucky Tail revenues for the fiscal third quarter were $1.36 million, we anticipate additional growth in 2023 with the launch of a pet supplement to its significant existing customer base.

Lucky Tail 是我們在亞馬遜和直接面向消費者平台上的寵物類別品牌，2022 年有機增長50%。Lucky Tail 第三財季收入為136 萬美元，我們預計隨著寵物產品的推出，2023 年將實現進一步成長補充其重要的現有客戶群。

Tytan Tiles or children STEM toy brand that led the pack with 100% organic growth in 2022. And we expect 50% plus organic growth in 2023 with the launch of four new products. Tytan Tiles' revenue for the fiscal third quarter was $1.25 million as compared to $165,000 for the same period in 2023, an approximate 656% improvement. The milestones for Tytan tiles, January Walmart launch in 1900 stores. Additional order was placed in February due to accelerated sales to double that order. While our full 3,911 Walmart store launch for the second half of 2023 as a result of the launch success.

Tytan Tiles 或兒童 STEM 玩具品牌在 2022 年以 100% 的有機成長引領產業。隨著四款新產品的推出，我們預計 2023 年有機成長將超過 50%。 Tytan Tiles 第三財季的營收為 125 萬美元，與 2023 年同期的 16.5 萬美元相比，成長約 656%。 Tytan 瓷磚的里程碑是一月份在沃爾瑪的 1900 家商店推出。由於銷售加速，訂單量翻了一番，二月又下了額外訂單。由於成功推出，我們將於 2023 年下半年推出 3,911 家沃爾瑪商店。

Subsequently, we announced the Disney license agreement for top-tier franchises. We will be developing and launching new branded products under this agreement. The products will be launched on Amazon, direct to consumer, and into Upexi's big box retail channels, with initial launch planned for 2023 holiday season.

隨後，我們宣布了迪士尼頂級特許經營權的許可協議。我們將根據該協議開發和推出新品牌產品。這些產品將在亞馬遜上直接面向消費者推出，並進入 Upexi 的大型零售通路，計劃於 2023 年假期季節首次推出。

In April we announced an agreement to acquire the remaining 45% interest in Cygnet online, one year ahead of schedule. The deal solidifies are Upexi's Amazon reseller strategy for the future, reduces the overall cost structure for the business. Closing the deal early offer significant G&A savings and the opportunity to purchase Cygnet at a discount to next year's overall anticipated costs.

4 月份，我們宣布達成協議，提前一年收購 Cygnet online 剩餘 45% 的股權。此交易鞏固了 Upexi 未來的亞馬遜經銷商策略，降低了業務的整體成本結構。提前完成交易可節省大量管理費用，並有機會以低於明年整體預期成本的折扣價購買 Cygnet。

Regarding M&A, we continue to be in a buyer's market. Internally, we don't feel any urgency to do M&A. Therefore, we continue to be strategic and patient in our strategy. We have a very specific mandate in terms of industry verticals, growth rates, profitability and structure that we will hold firm on. We continue to focus on high-growth, recession-resistant cash flowing businesses that are accretive to our future.

關於併購，我們仍然處於買方市場。在內部，我們並不覺得有任何併購的迫切性。因此，我們在策略上繼續保持策略性和耐心。我們在垂直行業、成長率、獲利能力和結構方面有非常具體的任務，我們將堅定不移。我們持續專注於高成長、抗衰退的現金流業務，這些業務對我們的未來有增值作用。

The profile of the nonbinding letter of intent to acquire wellness and nutrition brand we signed in April followed within that category. The brand has generated trailing 12-month revenues of $15 million in positive EBITDA. The acquisition falls squarely in line with our strategy to acquire founder owned and operated, high-margin, profitable brands. We see tremendous cost synergies and value in high margin, data rich brands in our nondiscretionary product of category.

我們在四月簽署的收購健康和營養品牌的非約束性意向書的簡介就屬於該類別。該品牌過去 12 個月的營收為 1500 萬美元，EBITDA 為正值。此次收購完全符合我們收購創辦人擁有和經營的高利潤、獲利品牌的策略。我們在非全權委託產品類別中看到了高利潤、數據豐富的品牌帶來的巨大成本綜效和價值。

Lastly, before I turn the call over to Andy, our teams remain keenly focused on growth, management of costs, and efficiencies to maximize margins. We were able to achieve higher adjusted EBITDA, on lower revenue base this quarter as compared to last sequential quarter by implementing aggressive cost savings and growth in our high-margin brands. Calendar 2023 is off to a tremendous start, and incremental improvement should continue with very strong growth potential for the second half of the year. Each of our brands has significant opportunity to outperform our expectations with Disney for Tytan Tiles, new product categories for Lucky Tail and new product launches for VitaMedica.

最後，在我將電話轉交給安迪之前，我們的團隊仍然高度專注於成長、成本管理和效率，以實現利潤最大化。透過實施積極的成本節約和高利潤品牌的成長，本季的營收基礎低於上一季度，我們能夠實現更高的調整後 EBITDA。 2023 年曆是一個巨大的開始，漸進式改進應該會繼續下去，下半年的成長潛力將非常強勁。我們的每個品牌都有很大的機會超越我們的預期，包括迪士尼的 Tytan Tiles、Lucky Tail 的新產品類別以及 VitaMedica 的新產品發布。

I will now pass the call over to Upexi's CFO, Andrew Norstrud to discuss our financial results in more detail. Andrew?

我現在將把電話轉給 Upexi 的財務長 Andrew Norstrud，更詳細地討論我們的財務表現。安德魯？

Thank you, Allan. And in accordance with the rules regarding the presentation of discontinued operations, the assets, liabilities and activities of infusions, and certain manufacturing operations have been reclassified as discontinued operations for all periods presented. The three months ended March 31, 2023, include three acquisitions completed after March 31, 2022. These acquisitions were Cygnet Online, LLC, our Amazon' aggregation business, Lucky Tail, our initial brand in the pet industry with products and sales channels, both domestically and international. And our most recent on E-Core, our product distribution business, which also includes Tytan Tiles, a children's toy box.

謝謝你，艾倫。根據有關終止經營業務列報的規則，輸液資產、負債和活動以及某些製造業務在所有列報期間均已重新分類為終止經營業務。截至2023 年3 月31 日的三個月，包括2022 年3 月31 日後完成的三項收購。這些收購是Cygnet Online, LLC（我們的亞馬遜聚合業務）、Lucky Tail（我們在寵物產業的初始品牌，其產品和銷售管道）國內和國際。我們最近的產品經銷業務是 E-Core，其中還包括兒童玩具盒 Tytan Tiles。

These acquisitions coupled with the elimination of the discontinued operations from the sale of infusions and certain manufacturing operations has significantly reduced the value of direct comparisons of the prior year to the current year operations. Revenue for the three months ended March 31, 2023, totaled $24.2 million, an increase of 447% as compared to $4.4 million for the same period the prior year. The revenue growth was primarily the result of these three acquisitions and the offset of the sale of infusions. Management believes that there is a significant opportunity in the next 12 months for organic growth within the newly acquired businesses and will focus the acquisition targets on the business that will enhance our current products or allow the business to accelerate growth.

這些收購加上輸液銷售和某些製造業務中已終止業務的消除，顯著降低了上一年與本年度業務直接比較的價值。截至 2023 年 3 月 31 日的三個月收入總計 2,420 萬美元，較上年同期的 440 萬美元增長 447%。收入成長主要是這三項收購的結果以及輸液銷售的抵銷。管理層認為，未來 12 個月內新收購的業務存在有機成長的重大機會，並將把收購目標集中在能夠增強我們現有產品或使業務加速成長的業務上。

Cost of revenue during this quarter totaled $14.6 million compared to $1.1 million for the same period the prior year. The cost of revenue growth was primarily related to the acquisition of three companies and the offset with the sales infusions.

本季的收入成本總計 1,460 萬美元，而上年同期為 110 萬美元。收入成長的成本主要與收購三家公司以及銷售注入的抵銷有關。

Gross profit for the quarter was $9.6 million, an increase of 190% as compared to $3.3 million for the same period the prior year. Management will seek to improve the gross profit and overall gross margin in the next 12 months as we are able to leverage a significant increase in our purchasing requirements and continue to consolidate operations.

該季度毛利為 960 萬美元，較上年同期的 330 萬美元成長 190%。管理層將尋求在未來 12 個月內提高毛利和整體毛利率，因為我們能夠利用採購需求的大幅增加並繼續整合業務。

Sales and marketing expense were approximately $3.5 million, an increase of $2.4 million or 220% compared to the same period last year. The increase in sales and marketing expense is primarily related to the acquisitions. Our management has aligned the marketing expenditures with our expected quarterly growth strategy to decrease the overall percentage of sales and marketing cost sales. We anticipate our advertising expense will continue to fluctuate in the following quarters as we fully implement our overall brand marketing strategy.

銷售和行銷費用約350萬美元，比去年同期增加240萬美元，即220%。銷售和行銷費用的增加主要與收購有關。我們的管理層已將行銷支出與我們預期的季度成長策略保持一致，以降低銷售和行銷成本的整體百分比。隨著我們全面實施整體品牌行銷策略，我們預計未來幾季的廣告費用將繼續波動。

Distribution costs were $3.5 million, an increase of $2 million or 326% compared to the same period last year. The increase in distribution costs is primarily related to the three acquisitions offset by the sale of infusions and the classification of these expenses as part of discontinued operations. In addition, there continue to be increases in transportation costs and third-party provider rates, which management has implemented strategy to change promotions, increased prices, and adjust packaging to decrease the overall percentage of distribution cost to sales.

分銷成本為350萬美元，比去年同期增加200萬美元，即326%。分銷成本的增加主要與輸液銷售抵銷的三項收購以及將這些費用歸類為已終止業務的一部分有關。此外，運輸成本和第三方供應商費率持續增加，管理層已實施改變促銷、提高價格和調整包裝的策略，以降低分銷成本佔銷售額的總體百分比。

General and administrative expenses were $2.5 million an increase of $900,000 or 46% with same period last year. As the company has changed with the acquisitions and the sales infusions, management has managed the general and administrative expenses, and we'll continue to implement strategies to decrease the percentage of G&A costs compared to the total sales.

一般及行政費用為250萬美元，較去年同期增加90萬美元，即46%。由於公司隨著收購和銷售注入而發生變化，管理層已經管理了一般和行政費用，我們將繼續實施策略，降低一般和行政費用佔總銷售額的百分比。

The company had a loss from continued operations of $2.1 million for the three months ended March 31, 2023, compared to a net loss of $200,000 for the same period in the prior year. As of March 31, 2023, the company had cash of approximately $1.2 million, a line of credit with $4.9 million available, and stockholders' equity attributable to Upexi stockholders of $36.7 million.

截至 2023 年 3 月 31 日的三個月，該公司持續營運虧損 210 萬美元，而去年同期淨虧損 20 萬美元。截至2023年3月31日，該公司擁有約120萬美元現金、490萬美元可用信貸額度以及歸屬於Upexi股東的股東權益3,670萬美元。

On May 12, 2023, the company announced a registered direct offering of common stock to -- for gross proceeds of approximately $7 million before deducting placement agent fees and other operating expenses. The closing of the offering is expected to occur on or about May 16, subject to customary closing conditions.

2023 年 5 月 12 日，該公司宣布註冊直接發行普通股，扣除配售代理費用和其他營運費用後，總收益約 700 萬美元。依慣例成交條件，本次發行預計將於 5 月 16 日左右完成。

At this time, I'd like to open up the call for any questions. Operator?

此時，我想打開電話詢問任何問題。操作員？

(Operator Instructions) Aaron Grey, Alliance Global Partners.

（操作員說明）Aaron Grey，Alliance Global Partners。

Good evening, and thank you for the questions. Nice to see the [EVA] improvement sequentially despite the seasonally lower quarter. So just on the EBITDA margin, as we look for the remainder of the year, you're looking for EBITDA margin improvement to continue to space up your guys' slide deck, but you do caution somewhat on various marketing spend. You kind of mentioned within your prepared remarks, Andrew, so just want to get some color. As we look at it today, how do you think about potentially pulling that lever on marketing that drive top line growth versus letting it drop down to the bottom line potentially for sake of higher gross sales? Thanks.

晚上好，謝謝你的提問。儘管季度季節性較低，但很高興看到 [EVA] 連續改善。因此，就 EBITDA 利潤率而言，當我們展望今年剩餘時間時，您希望 EBITDA 利潤率有所改善，以繼續擴大您的員工的幻燈片空間，但您對各種行銷支出確實有些謹慎。安德魯，你在準備好的發言中提到過，所以只是想了解一下。正如我們今天所看到的，您如何看待潛在地拉動行銷槓桿來推動收入成長，而不是為了更高的總銷售額而讓它下降到底線？謝謝。

Andrew. You want me to grab that or --?

安德魯。你想讓我抓住那個還是──？

Yeah, you can go ahead or I can either way.

是的，你可以繼續，或者我也可以。

Go ahead, I'll comment on it as well, go ahead.

來吧，我也來評論一下，來吧。

Yeah, I mean, basically when they're looking at the marketing, they're looking at the cost per acquisition of the customer. And so what you saw in the second quarter ending December was that the margin department decided to take advantage of some things and spend a little bit extra money. We've got -- we saw some very good results of that in this quarter and will continue.

是的，我的意思是，基本上，當他們考慮行銷時，他們會考慮每次獲取客戶的成本。因此，您在截至 12 月的第二季中看到的是，利潤部門決定利用一些優勢並多花一點錢。我們在本季度看到了一些非常好的結果並將繼續下去。

So there are times that management and the marketing departments is going to decide to spend that has an opportunity to capitalize on that cost per customer acquired. And we spend more in the beginning, which causes that to take up the EBITDA to the bottom line. That's basically what I'm letting you know that it's not going to be a perfect situation where it's always going to be EBITDA growth because they decide to spend more in one quarter than the other.

因此，有時管理層和行銷部門會決定進行支出，以便有機會利用獲得的每個客戶的成本。我們一開始就花更多的錢，這導致 EBITDA 佔了底線。這基本上就是我要讓你知道的，這不會是一個完美的情況，即 EBITDA 總是會增長，因為他們決定在一個季度比另一個季度支出更多。

Aaron, just to close, just a follow, it's kind of how we made higher EBITDA this quarter on a lower base. Last quarter we talked about how we spend extra money going into the end of the year, it did drive sales, but it takes a little longer for the back end of that to pay off. So for us, we really look at it as success in this quarter, being able to drive that, knowing that $3 million more of sales in another quarter could drive a significant more margin to us. So we're at that point where everything -- we have the opportunity to let everything flow above this number, maybe even a little bit lower to increase that margin throughout the year.

亞倫，最後，只是一個後續，這就是我們本季在較低基數上實現更高 EBITDA 的方式。上個季度我們討論瞭如何在年底前花費額外的錢，它確實推動了銷售，但後端需要更長的時間才能獲得回報。因此，對我們來說，我們確實將其視為本季的成功，能夠推動這一目標，因為我們知道另一個季度銷售額增加 300 萬美元可以為我們帶來顯著的利潤率。因此，我們正處於這樣一個時刻——我們有機會讓一切都高於這個數字，甚至可能稍微低一點，以增加全年的利潤率。

No, appreciate that detail. That's helpful. And then just diving into one sentence with the Tytan Tiles, nice to see for Walmart launch coming and you got Disney on there as well. And how do you look at potential additional partnerships for the remainder of the year? And are there anything we should think about in terms of like inventory and as you look to bring on and get rates before Walmart or the Disney inventory as well. Thanks.

不，欣賞這個細節。這很有幫助。然後用 Tytan Tiles 說一句話，很高興看到沃爾瑪即將推出，迪士尼也加入其中。您如何看待今年剩餘時間潛在的更多合作關係？當您希望在沃爾瑪或迪士尼庫存之前獲得並獲得價格時，我們是否應該考慮庫存等方面的問題。謝謝。

Yeah. Inventory has been a really been a hindrance in this quarter and still continues to be. We are -- on our call today, we talked about just being sold out, we're really low volumes, Amazon's sold out, I guess we never really intended to see this amount of success as quickly, but it is being cured, everything's being shipped. We're rusting all the ship and so we should see incremental improvements, both currently what's going on now and then even especially into the second half of the year, will be more prudent on ordering additional inventory, especially for a launch with Disney and those opportunities. So - and I believe that we're launching all four new products coming sometime mid-summer as well. So we won't let it happen again, have, but it's a good problem to have to be demand outsource. Obviously, we'd like to be selling it right now.

是的。庫存確實是本季的一個障礙，而且仍然如此。我們——在今天的電話會議上，我們談到了被搶購一空，我們的銷量真的很低，亞馬遜被搶購一空，我想我們從來沒有真正打算這麼快地看到如此多的成功，但它正在被治愈，一切都在發貨。我們正在生鏽所有的船，所以我們應該看到逐步的改進，無論是目前正在發生的事情，還是特別是到今年下半年，在訂購額外庫存時都會更加謹慎，特別是對於與迪士尼和那些公司一起推出的產品機會。所以 - 我相信我們也會在仲夏的某個時候推出所有四種新產品。所以我們不會讓這種情況再次發生，但必須將需求外包是一個好問題。顯然，我們希望現在就出售它。

Yeah, certainly high-quality problem. but want to get remedied. So glad to hear that you got that comment.

是的，當然是高品質問題。但想得到補救。很高興聽到你收到這樣的評論。

Last question for me and I'll jump back in the queue. You've got some M&A that you announced. You talked about potential other M&A. There's newest one was wellness. You had done times and toys in December. Just as you look at the M&A pipeline, what type of business lines do you think about kind of going forward between the more discretionary and Staples? And how do you think about now the bar for M&A as you're looking to absorb some of the recent acquisitions that you've done and versus maybe doing too much and trying to integrate than what you've already accomplished versus adding new ones to the plate? Thanks.

我的最後一個問題，我會跳回隊列。您已經宣布了一些併購。您談到了潛在的其他併購。最新的一項是健康。十二月你已經玩過很多次了，也玩過很多玩具。正如您審視併購管道一樣，您認為更自由裁量的公司和史泰博之間的業務類型會是什麼樣子？您現在如何看待併購的門檻，因為您希望吸收最近完成的一些收購，而不是做太多並試圖整合已經完成的業務，而不是添加新的收購碟子？謝謝。

I think the bar would be pretty high for us right now to add another acquisition. We've got I mean just Disney launch could be as big as an acquisition in all of the things we have going across really each of our brands, we talk about Tytan, but each of the brands has initiatives that could be super accretive to us. Our pet brand is going to be launching, our pet supplement brand, we're launching new products into that category, designing the whole new platform to increase sales. Same across VitaMedica entering new categories. So really, we become the leader in certain categories, and now we're starting to spread that out. I think just to sum it up, the bar very high right now. We've got a lot to do here and a lot opportunities, we're going to cut really -- put the pedal down on till the end of the year.

我認為現在對我們來說增加另一筆收購的門檻相當高。我的意思是，迪士尼的推出可能與我們每個品牌所涉及的所有事物一樣大，我們談論 Tytan，但每個品牌都有可能對我們產生超級增值的舉措。我們的寵物品牌即將推出，我們的寵物補充劑品牌，我們將推出該類別的新產品，設計全新的平台以增加銷售量。 VitaMedica 進入新類別也是如此。事實上，我們已經成為某些類別的領導者，現在我們開始將其推廣開來。我想總結一下，現在的門檻非常高。我們在這裡有很多事情要做，也有很多機會，我們將真正減少——直到今年年底。

Okay, Great. Makes sense.

好的，太好了。說得通。

Thanks, for the color. I'll jump back in the queue.

謝謝，給個顏色。我會跳回到隊列中。

[John McEvoy], Paulson Investments.

[約翰·麥克沃伊]，保爾森投資公司。

Thanks. Hey, Andy. Hey, Aaron, how are you doing?

謝謝。嘿，安迪。嘿，亞倫，你好嗎？

Congratulations.

恭喜。

Good John.

好約翰。

Kind of related to the first question is now that you're getting more and more data, how is your ability to manage it and even use AI perhaps to keep costs low, but still be able to manage and enhance the products that you introduce into your channels. Thanks.

與第一個問題相關的是，現在你獲得了越來越多的數據，你如何管理這些數據，甚至使用人工智慧來降低成本，但仍然能夠管理和增強你引入的產品你的頻道。謝謝。

Good job. Well on a lot of people are kind of reducing headcount and stuff. We've added a couple of key employees this quarter, really looking at all of those opportunities, putting together even a more robust team. Like I said, our problem right now is selling all the products, not selling all the products we have, but trying to get enough product to sell and entering each new categories. So data is becoming more and more important.

好工作。嗯，很多人都在減少員工數量之類的事情。本季我們增加了幾名關鍵員工，並真正關注所有這些機會，組建了一支更強大的團隊。就像我說的，我們現在的問題是銷售所有產品，不是銷售我們擁有的所有產品，而是試圖獲得足夠的產品來銷售並進入每個新類別。所以數據變得越來越重要。

We are integrating a new ERP in this quarter, which is obviously -- a lot of work is very cumbersome for our team. But each of the steps we're taking right now is really to maximize the opportunities that we currently have. So that's why our projections seem to progress and go up for EBITDA and revenue throughout the year. Takes a little time to do those things, but we're making great progress. And I think now throughout the year and especially by the time we get to the end of year leaving and going into next year, we should be set for even stronger opportunities next year.

我們將在本季度整合一個新的 ERP，這顯然——許多工作對我們的團隊來說非常繁瑣。但我們現在採取的每一步實際上都是為了最大限度地利用我們目前擁有的機會。這就是為什麼我們對全年 EBITDA 和收入的預測似乎有所進展和上升。做這些事情需要一點時間，但我們正在取得很大進展。我認為，現在全年，尤其是當我們到年底離開並進入明年時，我們應該為明年提供更好的機會。

Great. Thank you.

偉大的。謝謝。

(Operator Instructions) This concludes our question-and-answer session. I would like to turn the conference back over to Alan Marshall for any closing remarks.

（操作員說明）我們的問答環節到此結束。我想將會議轉回艾倫馬歇爾發表閉幕詞。

Thanks, operator. Upexi continues to execute our strategy and our growth continues to meet or exceed our expectations. We have multiple opportunities across our brands and business that should help drive overall growth in 2023 and even into 2024.

謝謝，接線生。 Upexi 繼續執行我們的策略，我們的成長持續達到或超越我們的預期。我們的品牌和業務擁有多種機會，這將有助於推動 2023 年甚至 2024 年的整體成長。

I want to take a minute to thank our team. Our team deserves a lot of credit for all the work and effort has gone into the current success and for all the initiatives they have coming to drive our future growth. I want to summarize everything by thanking our investors and thanking everyone for joining the call. We look forward to more calls in the future and really appreciate everyone's time.

我想花一點時間感謝我們的團隊。我們的團隊值得高度讚揚，因為他們為當前的成功所付出的所有工作和努力，以及他們為推動我們未來成長而採取的所有舉措。我想透過感謝我們的投資者並感謝大家加入電話會議來總結一切。我們期待未來更多的電話，非常感謝大家的時間。

So have a great evening and everyone in Upexi, Thank you.

祝Upexi 的每個人度過一個愉快的夜晚，謝謝。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。